Using a bookkeeper will pay off in the long run and I want you to understand why it’s a smart decision. As a business owner, you have many responsibilities and keeping track of your business’s financial records can be overwhelming. While it may seem like a good idea to save money by handling your own bookkeeping, using a professional bookkeeper can actually bring many benefits to your business.
Remove the Guesswork
One reason to use a bookkeeper is to ensure accurate tracking of all business income and expenses. A professional bookkeeper understands accounting rules and how to properly record business transactions. They understand what can be expensed versus what needs to be capitalized as an asset and depreciated over time. Also, if you have employees, a bookkeeper knows how to properly record payroll expenses (which are tricky). Using a bookkeeper to maintain accurate financial records will make it easier to stay in compliance with tax laws and obtain financing from lenders or investors. This is one way a bookkeeper can payoff in the long run.
Manage Your Profits
Also, a professional bookkeeper can help you keep track of your financial results on a monthly basis, which can help you make informed decisions about your business. Reviewing the financial results monthly will help you run your business better by allowing you to adjust pricing and manage costs to maximize profits. You will also be able to estimate and plan for income taxes each quarter and set cash aside to pay your taxes timely.
Set Yourself up for Success
Finally, if you ever plan to sell your business, you will only get maximum value if you have reliable and clean historical financial records. A professional bookkeeper can help you maintain organized financial records that will make it easier to present your business as a valuable asset to potential buyers. This is another way a bookkeeper can payoff in the long run.
I feel so strongly about the importance of using an experienced and qualified bookkeeper that I will not work with a business that does not use one. The success or failure of your business relies heavily on the financial results and unless you have taken accounting classes, you are most likely going to make a mess of your books doing it yourself. Having messy, inaccurate books will cause lots of headaches and possibly unpleasant surprises at tax time.
How to Find a Bookkeeper
It can be hard to find a good bookkeeper so I want to give you some tips. First, I prefer to work with a bookkeeping firm or group that has more than one or two people. A group will provide continuous coverage for you if one person is out on vacation. Additionally, a bookkeeping firm will have a manager who is more experienced and reviews other people’s work to help ensure the accuracy of your books. I always suggest people talk to three different firms, ask questions about their education, length of experience and what industries they serve. I recommend you follow up on references to get an idea of their responsiveness to clients. Finally, you will want to look for some type of certification like a QuickBooks certified bookkeeper. You also might look for bookkeepers that belong to professional organizations such as the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers. People that participate in professional organizations are usually committed to staying up to date on accounting rules and view their role as an important component of their client’s success.
Overall, using a professional bookkeeper will pay off for your business in many ways. I encourage you to start off right and don’t try to save money by keeping your own books. While it may seem like an added expense, the benefits of accurate and timely financial record keeping will more than offset the cost.